How will the WEEE & RoHS Directives affect you?

February 2006
The Waste Electrical and Electronic Equipment (WEEE) directive requires companies who manufacture, distribute/import, and sell electronic equipment to be responsible for the disposal of their products. The directives cover audio, computing and telephony equipment, domestic appliances and any product requiring electrical current or electromagnetic fields to operate.

The Restriction in the use of certain Hazardous Substances (RoHS) directive requires companies to phase out hazardous substances in new products.

Under the directives, the costs and obligations of producing more environmentally friendly products and disposing of products will fall on the producer, who may be a manufacturer, importer and retailer in one or more EU state. Complying with the new regulatory environment will be critical and significant attention needs to be given to the wider legal, accounting and risk management implications.

Some issues to consider:

• Have you considered the legal requirements in each EU country that you trade in?
• How will your systems track the data required to demonstrate compliance?
• What is the impact of accounting for the implementation of the directives on your operating results?
• Have you clarified where responsibilities lie within your supply chain, and are there risks that can be transferred within your supply chain?
• How will the directives affect the design of your products?
• Will you incorporate the costs of implementing the directives into your product pricing strategy?

If you are concerned about how these directives may impact your business, we can provide the following support:

• Assess and map your WEEE risk profile and assist in identifying priority areas.
• Advise on appropriate accounting treatments in multiple territories under IFRS or other local requirements, including timing of liability recognition, group reporting and consolidation adjustments.
• Review whether new product designs meet WEEE/RoHS regulations and assess environmental profile of products.
• Review governance arrangements and ensure controls are in place to manage WEEE/RoHS related issues.
• Assess the potential options for pricing for WEEE, including the direct and indirect tax implications, and the impact on market share.
• Review systems and controls to manage WEEE/RoHS compliance, to avoid duplication and inefficiency within business functions and across different territories.